House affordability

[okgo]

MOBB said:

Nicer house, lesser car would be my choice.

Odd choice to pay more a month on your car than on your house?

An M3 still cost 60 grand whether you buy it in Luton or London...

There are a lot of people that will have cars costing more than their house due to where they live.


8-900 childcare? Its £1500 a month in all the places I've looked at for 5 days.

Edited by okgo on Wednesday 27th July 13:59

[superkartracer]

85Carrera said:

mikees said:

I'm going to be the miserable old man here, but ( sorry sarnie for the swearing ) oh my titty fking Christ, are they mad the stupid, "sense of entitlement", "because we're worth it" fk wits?

I despair of the youth of today.

Buy a sink estate stt hole and have 2 expensive leased cars? Audi ? White? OP can you slap their stupid faces pls?

Shouldn't new lending regs stop this fkwittery?

Quite right. I'm sick of hearing how the entitled fking millennialls can't get on the housing ladder. Don't buy overpriced st cars on credit, dont buy 2-3 coffees a day, don't go on holiday, save some money and you can buy a house.

That's what I'd did (eg going to the market at closing time to get cheap veg, forsaking holidays, not going out 4-5 times a week) and this is also what my parents did. And my siblings and my mates. It wasn't easy but we didn't bh and whine, we got on with it and made the best of it.

It's never been easy to buy a house. The difference is that in the past it was understood that you had to make sacrifices whereas nowadays youngsters have been sucked into buying very expensive average/forgettable cars because the monthly repayment are "low" (but guess what, it all adds up), expect 3-4 exotic holidays a year and wonder why they can't afford a property.

The idea that it was ever easy it insulting and immature.

Grow up, get a life (literally) and stop fking whinging is my message to the entitled tts who think they can have the same holidays, lifestyle, etc as those of us who have worked for 25 years and buy a property. Wake up, losers, we couldn't do that, so why do you expect to?

Awesome Porsche driving stuff.

[Welshbeef]

okgo said:

An M3 still cost 60 grand whether you buy it in Luton or London...

There are a lot of people that will have cars costing more than their house due to where they live.


8-900 childcare? Its £1500 a month in all the places I've looked at for 5 days.

Edited by okgo on Wednesday 27th July 13:59

This is much more inline with my c£28k is the breakdown point for working or being a home maker

[MOBB]

okgo said:

An M3 still cost 60 grand whether you buy it in Luton or London...

There are a lot of people that will have cars costing more than their house due to where they live.

Edited by okgo on Wednesday 27th July 13:59

Absolutely. Was more referring to the OP's scenario of making do with a bad area, but paying more than his mortgage for a car payment.

[Ozzie Osmond]

okgo said:

There are a lot of people that will have cars costing more than their house due to where they live.

I'll call you on that one. Please post some pics of a street of flash cars parked outside former council houses somewhere up North....

Houses have always been expensive. This talk of "affordability" is nonsense. If anything, houses are far more affordable today because interest rates remain on the floor and mortgage money is so cheap.

[okgo]

Ozzie Osmond said:

I'll call you on that one. Please post some pics of a street of flash cars parked outside former council houses somewhere up North....

Houses have always been expensive. This talk of "affordability" is nonsense. If anything, houses are far more affordable today because interest rates remain on the floor and mortgage money is so cheap.

Obviously I don't actually go up north. But Its not unreasonable to think that someone buying where OP is mentioning might have two cars on lease that cost 60k or so?

Avg salary vs avg house price graph doesn't agree with you, does it?

[R8Steve]

Ozzie Osmond said:

okgo said:

There are a lot of people that will have cars costing more than their house due to where they live.

I'll call you on that one. Please post some pics of a street of flash cars parked outside former council houses somewhere up North....

Houses have always been expensive. This talk of "affordability" is nonsense. If anything, houses are far more affordable today because interest rates remain on the floor and mortgage money is so cheap.

Maybe not in total value but in monthly payments i'd have to agree with him.

[superkartracer]

Ozzie Osmond said:

okgo said:

There are a lot of people that will have cars costing more than their house due to where they live.

I'll call you on that one. Please post some pics of a street of flash cars parked outside former council houses somewhere up North....

My brother lives in Brum, the drug dealers next door have cars parked outside worth x3 the cost of the house i reckon.

Does that count? ha .

[Ozzie Osmond]

:

[Welshbeef]

Ozzie Osmond said:

okgo said:

There are a lot of people that will have cars costing more than their house due to where they live.

I'll call you on that one. Please post some pics of a street of flash cars parked outside former council houses somewhere up North....

Houses have always been expensive. This talk of "affordability" is nonsense. If anything, houses are far more affordable today because interest rates remain on the floor and mortgage money is so cheap.

I'm note sure I think the only way to tell is if you had average house price today v mortgage payment trended historically.


It's conjecture otherwise.

Sure a hovel in the Arse end of nowhere costs nothing but a normal place in SE it half a million easy

[Ozzie Osmond]

R8Steve said:

Maybe not in total value but in monthly payments i'd have to agree with him.

Mortgage rates used to be, say, 5% higher than they are today.

• Today a £100,000 "interest only" mortgage at 2% costs £2,000 a year or £167 per month
• Formerly a similar £100,000 mortgage at 7% would have cost £7,000 a year or £583 per month

That's more than three times higher than the cost today.

Or to put it another way,

• You can have a £350,000 mortgage today
• for the cost of a £100,000 mortgage a few years ago

So you've got MORE THAN THREE TIMES the spending power today.

[oyster]

85Carrera said:

mikees said:

I'm going to be the miserable old man here, but ( sorry sarnie for the swearing ) oh my titty fking Christ, are they mad the stupid, "sense of entitlement", "because we're worth it" fk wits?

I despair of the youth of today.

Buy a sink estate stt hole and have 2 expensive leased cars? Audi ? White? OP can you slap their stupid faces pls?

Shouldn't new lending regs stop this fkwittery?

Quite right. I'm sick of hearing how the entitled fking millennialls can't get on the housing ladder. Don't buy overpriced st cars on credit, dont buy 2-3 coffees a day, don't go on holiday, save some money and you can buy a house.

That's what I'd did (eg going to the market at closing time to get cheap veg, forsaking holidays, not going out 4-5 times a week) and this is also what my parents did. And my siblings and my mates. It wasn't easy but we didn't bh and whine, we got on with it and made the best of it.

It's never been easy to buy a house. The difference is that in the past it was understood that you had to make sacrifices whereas nowadays youngsters have been sucked into buying very expensive average/forgettable cars because the monthly repayment are "low" (but guess what, it all adds up), expect 3-4 exotic holidays a year and wonder why they can't afford a property.

The idea that it was ever easy it insulting and immature.

Grow up, get a life (literally) and stop fking whinging is my message to the entitled tts who think they can have the same holidays, lifestyle, etc as those of us who have worked for 25 years and buy a property. Wake up, losers, we couldn't do that, so why do you expect to?

OK, show me the numbers for how that would work for a couple near or in London?

Then tell me that just a little bit of sacrifice is all it takes.

[okgo]

oyster said:

OK, show me the numbers for how that would work for a couple near or in London?

Then tell me that just a little bit of sacrifice is all it takes.

I can probably answer that question as someone who bought in SW London area when 25 (28 y/o now) - what is it you want to know?

FYI - I agree with a fair bit of what he has said, but not all, and it 'is' harder now, I am sure of it.

[Welshbeef]

okgo said:

I can probably answer that question as someone who bought in SW London area when 25 (28 y/o now) - what is it you want to know?

FYI - I agree with a fair bit of what he has said, but not all, and it 'is' harder now, I am sure of it.

Let's not even look at London let's look at Readingg /MUCH cheaper.

So average house let's say a terrace £380k++ so your going to need a deposit of what 10% so nearly £40k deposit between 2 people by the age of 25. Let's say they lived with mum and dad from 18-25 that's £208pcm for 8 years not an insignificant amount.
Now if you went to uni you'll have £60k of student loans which reduces your income and clearly you have not got £20k or person @ 25yo. So you'd then be what 32yo with £20k in the bank - I'm pretty sure than in 8 years time that same property will be a lot more let's be conservative and say 4% year on year so it will be £520k and you'll need £26k each deposit oh... Plus a lot more stamp duty than before so more years of saving. Also at this point it's not clear you'll earn enough to have the banks affordability for the delta between he 10% deposit and the house price.

[p1stonhead]

Ozzie Osmond said:

R8Steve said:

Maybe not in total value but in monthly payments i'd have to agree with him.

Mortgage rates used to be, say, 5% higher than they are today.

• Today a £100,000 "interest only" mortgage at 2% costs £2,000 a year or £167 per month
• Formerly a similar £100,000 mortgage at 7% would have cost £7,000 a year or £583 per month

That's more than three times higher than the cost today.

Or to put it another way,

• You can have a £350,000 mortgage today
• for the cost of a £100,000 mortgage a few years ago

So you've got MORE THAN THREE TIMES the spending power today.

Yeah but not that many people or even couples can borrow £350k based on salary multiples with regular expenses taken into account.

[MrBarry123]

Ozzie Osmond said:

Mortgage rates used to be, say, 5% higher than they are today.

• Today a £100,000 "interest only" mortgage at 2% costs £2,000 a year or £167 per month
• Formerly a similar £100,000 mortgage at 7% would have cost £7,000 a year or £583 per month

That's more than three times higher than the cost today.

Or to put it another way,

• You can have a £350,000 mortgage today
• for the cost of a £100,000 mortgage a few years ago

So you've got MORE THAN THREE TIMES the spending power today.

Your example is not representative though because an interest only mortgage is much, much, much harder to get in 2016 i.e. a) applicants often to have an income of £75k+, b) need to have a deposit of at least 25% and c) have a suitable repayment plan agreed with the lender.

For a large number of first time buyers, all of those criteria are unachievable.

These days, a £300k mortgage with a 5% deposit costs approximately £1,200-£1,300 per calendar month over a 35 year period because the capital is being paid off at the same time as the interest.

A £100k mortgage with a 5% deposit is approximately £550 per calendar month over a 35 year period.

[BlackST]

okgo said:

The fact the great grand parents are still alive and able to look after kids tells you all you need to know, they sound like proper teen preggo types, so I'm sure they'll be around for a while yet.

29 and 27.

[okgo]

BlackST said:

29 and 27.

Yes, exactly.

[BlackST]

okgo said:

BlackST said:

29 and 27.

Yes, exactly.

Not exactly.
Grandparents are quite active at 70 years of age
The couple I speak about are 29 and 27 with the baby being 18 months old.
Not teen preggo

[drainbrain]

60 seconds searching turned up that:

http://www.rightmove.co.uk/property-for-sale/prope...

Obviously the place needs a good cosmetic overhaul, but what's visible is easy sorted by DIY. And East Kilbride's not that bad as a place to live. So why wouldn't a young couple with a modest income and a kid on the way buy it?

There's property like it (and better) all over the UK at the price point.